Lay Betting Explained – How to Lay a Bet?

On first impressions, lay betting can seem like a complicated concept, however, in essence, it’s simply backing something not to happen in a game, fixture or event.

When you place a lay bet on betting exchanges, you’re essentially taking on the role of a traditional bookmaker and in some ways, it’s the opposite of standard wagering.

In this BetIdeas explainer, we’re going to explore the meaning of the term, how it differs from normal markets, as well as some of the ways you can utilise it to its full potential.

What is Lay Betting?

In stripped back terms, with a lay, you’re betting against a particular outcome happening in a sports betting scenario. Instead of backing a team, horse or player to win, as you would with a traditional wager, you’re betting that they won’t.

That’s laying at its most basic level but, like any other punting strategy, there are other layers and elements to consider.

The lay betting meaning stems from betting exchanges, where a peer-to-peer wagering format is used instead of the usual fixed-odds markets that you get with normal bookmakers.

These exchange platforms (like Betfair Exchange, Smarkets and Matchbook) allow punters to place matching “back” bets (on something to happen) with “lay” bets (something to not happen).

For example, in a Premier League football fixture, if someone backed Manchester United to win a match, you could potentially lay that bet, which would earn you a profit if United drew or lost.

Similarly, you could lay a horse not to win the Cheltenham Gold Cup instead of backing it to win in the normal way. Here, you’re betting on any other horse to win when you lay the other, giving you a higher probability of success.

The idea is to create more control in that you get to set the odds you’re willing to offer and the stake you want to attach to that price.

This strategy also introduced the concept of liability, however. That’s the amount you risk if your lay loses and we’ll take a closer look at that shortly.

How Does Lay Betting Work?

Now, we’re going to take a look under the hood to see how the laying machine works. In laying, you’re not just placing a wager, you’re offering a bet for others to take.

On a betting exchange, the process begins with selecting a market, which could be a match in the Premier League or a pick from horse racing betting tips out there.

Betting exchanges work by matching your lay with backers. If no one matches it immediately, your bet sits in the market until it does, or you can cancel it. The exchange charges a commission too, which is typically 2-5% on your net winnings.

When you navigate your way to the event in question on the exchange, you’ll usually see two columns with different prices, one for each side of the market (back and lay).

When you place bets in lay markets, you can specify the odds you’re willing to offer, but this is where your liability comes into play.

For example, if you lay bet £10 on a horse at odds of 5.0 (4/1), your liability is £40 (£10 x (5.0-1)) and if the horse loses, you stand to win £10 (minus commission). However, if the horse wins and your lay fails, you would pay out £40 (based on the original 4/1 odds you’ve layed).

Take a look at the screenshot above, which shows an upcoming Premier League fixture between Liverpool and Manchester City. Here, we can see that the back odds for each time are in blue and the lay odds are in pink.

Say, you choose to lay Man City not to win at Anfield. If Pep Guardiola’s side draws or loses, your lay pays out. However, if City win, you would have to meet your liability debt.

How to Lay Bets

If you’ve read enough and are ready to try out lay betting sites for yourself, you can do so by following the step-by-step guide we’ve put together below:

1. Sign Up and Fund Your Account: Create an account on an exchange platform. Deposit funds, ensuring you have enough to cover any potential liabilities. New users often get welcome bonuses for signing up, so make sure check the terms.
2. Navigate to the Market: Log in and browse to your desired sport (football, horse racing, tennis, etc). Select the specific event that you want to lay.
3. Choose Your Selection: In the market view, identify the outcome you want to lay. For a head-to-head market in football, for example, this could be laying the home team to win.
4. Enter Your Lay Details: Click the lay box next to your selection. Input your lay stake (and the odds. The platform auto-calculates your liability. Use a back and lay calculator if needed for extra accuracy.

The Difference Between Back and Lay Betting

Next, we’ll discuss the main differences between backing/laying. In short, a back bet is the traditional wager where you bet on an outcome to happen (like backing a team to win a football match). If correct, you earn a payout based on the odds and stake involved.

In contrast, a lay is the inverse, in that you are betting against an outcome. You become the bookie here, accepting stakes from traditional “backers”. For example, you might lay Arsenal to not beat Newcastle.

With back bets, the betting technique is much more straightforward. These bet types are widely available across all the usual bookmaking brands, there is no liability to calculate, and for the most part, you’re dealing with a win/loss format.

Lays, meanwhile, can only be placed with exchanges and involve accepting a liability to cover any incorrect wagers. The lay you select must also be “matched” by a regular better on the other side of the bet.

Both bet/lay wagers are used in strategies like arbitrage betting however, where you back and lay the same outcome across different platforms to guarantee a profit.

Here are some of the key differences between the two:

• Risk Profile: Back bets only risk your stake while laying risk liability, which can exceed your stake.
• Availability: Back bets are everywhere, while lay bets can only be placed at exchanges.
• Taking Profits: Back wins yield odds-based payouts, while lays yield the backer’s stake minus commission.
• Markets: Both suit football and racing markets, but laying shines in multi-runner events.

Pros & Cons of the Lay Bet

Laying won’t be for everyone and like any other strategy, there are plus points and negatives to it that you’ll need to consider. We’ll get into some of those next.

Best Lay Betting Sites in the UK

Exchanges aren’t anywhere near as common as traditional bookmakers, however, punters in the UK have a few brands to choose from, starting with industry-leaders, Betfair.

Launched in 2000, the Betfair Exchange was introduced as the first public betting exchange, enabling bettors to bet directly against each other in a move that revolutionised the landscape.

Before their arrival, trading was limited to professionals, however, Betfair democratised the process with their user-friendly platform. Today, it boasts millions of users and vast liquidity, making it the number one destination for lay bettors.

Other options include Smarkets, Matchbook and Betdaq, all of whom offer similar services with secure, regulated environments. Always check for UK Gambling Commission licences on any exchange you’re using.

Effective Lay Betting Strategy

To help you harness the power of laying fully, we asked our team of betting experts at BetIdeas to provide some advice and lay betting tips that you can apply to your own strategies:

Focus on Value Lays

Work to identify overpriced favourites for your lay betting systems using the ample amount of statistical data that’s available online. You can lay bets when market prices undervalue the chance of failure. For instance, when an overhyped football team are showing statistical vulnerability.

Use Matched Betting

Combine back lay betting to earn low-risk profits. With arbing (or lay bet matching), you back a selection with a bookmaker using the free bets you earn at sign up, then lay the same pick on an exchange. Use a tool like a back/lay calculator to ensure you stake the right amount in each direction to lock in a guaranteed payout, regardless of outcome.

Specialise in Mainstream Sports

Focus on familiar areas like racing or football-based markets. In racing, you can lay short-priced favourites with poor recent form lines, for example. Liquidity is generally excellent for “big” sports like football betting and racing, giving you much more room to manoeuvre on the exchanges.

Incorporate Hedging

Use a hedging calculator to adjust your positions where needed. If your lay looks shaky in-play, hedge your bet by backing the same outcome partially, securing partial profits or limiting losses. Using the cash-out feature can be useful in this situation too.

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